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Consider once again the model of educational attainment discussed in Section 21.2. Suppose that employers can announce in advance the amount of education that will be required for any given job. In other words, treat this as a screening problem rather than as a signaling problem. Are there any separating equilibria? Pooling equilibria? If so, what are they? Upon what do your answers depend? Explain using graphs.
What if the price of labour relatively cheaper than capital, for labour is $1 and capital for $1000. Two combination produce save amount of output, one is 10 labour and 10 capital, one is 1000labour and 1 capital. The second one cost the least, Can i..
Suppose that a paper mill "feeds" a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. The 1st unit of boxes increases earnings by $10, the 2nd by $9, the third $7, and so on, until th..
price information for a typical market basket of goods purchased by consumers and assume that 2000 is the base year:1.Calculate the price index for 2000. 2.Calculate the price index for 2001. 3.Calculate the price index for 2002. 4.Calculate the pric..
How well does the estimated line visually appear to fit the data and on the basis of the appropriate goodness of fit measures, how well does the model fit?
Company A has fixed expenses of $15,000 per year and each unit of product has a $0.002 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.05 variable cost. At what number of units of annual prod..
The other 99 players then vote on whether to split the pie in that way or not. If a majority of them (that is 50) vote for the split, then the split is implemented, each player obtaining the proposed share. If a majority vote against the split.
This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas), but sold them for $12 each. Based on this information we can conclude that Harry's production of large pepperoni pizzas this year.
You may need to play around with the numbers to make this work out.
A bullock cart can travel at the rate of 4 kmph for the first two hours of a trip. After the firsttwo hours, the bullock cart's speed drops to 3 kmph. How many hours will it take thebullock cart to travel 20 km?
Discuss the differences you observe in your answers above between the monopoly and perfectly competitive firm. x-axis 0 8 18 21 30 price and cost per unit y-axis 0 20 33 35 40 quanity.
Suppose that the country of Bigu has a population of 127 million, of which 83 million are in the working-age population. Of those , 25 million are not in the labor force and 52 million are employed. A) Calculate the working age population as a per..
Suppose the two countries split the difference between the willingness to pay for computers and the willingness to accept computers. Compute the terms of trade, that is, the rate at which the two countries will exchange computers and shoes.
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